For Crave franchises in Maryland, when are initial fees and payments owed by franchisees due, considering the financial assurance required by the Maryland Securities Commissioner?

According to Crave's 2025 Franchise Disclosure Document, the timing of initial fee payments for franchisees in Maryland is specifically addressed due to a financial assurance required by the Maryland Securities Commissioner. This requirement is based on Crave's financial condition. As a result, all initial fees and payments owed by franchisees in Maryland are deferred. These payments are not due until Crave has completed its pre-opening obligations as outlined in the franchise agreement. This means that a new franchisee will not have to pay the initial franchise fee until Crave has fulfilled its responsibilities, such as site selection assistance, training, and providing operations manuals.

This deferral also applies to development fees and initial payments by area developers in Maryland. These fees are deferred until the first franchise under the development agreement is opened. This provision protects area developers by ensuring they don't have to pay these fees until a store is actually up and running.

This amendment is specific to Maryland due to the state's franchise regulations and the financial assurance required by the Maryland Securities Commissioner. Prospective franchisees in Maryland should carefully review the franchise agreement and any addenda related to this deferral to fully understand the conditions and obligations involved. This deferral of fees could be a significant benefit for franchisees, reducing their upfront financial burden and aligning their payments with the progress of the franchise opening.